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IBM Rebuilds Europe: The Curious Case of the Transnational Typewriter

Published online by Cambridge University Press:  28 December 2015

PETRI PAJU  and
THOMAS HAIGH
PETRI PAJU
Affiliation:
Petri Paju, PhD, is a researcher at the University of Turku, Finland, Department of Cultural History. Email: petpaju@utu.fi.
THOMAS HAIGH
Affiliation:
Thomas Haigh is Associate Professor in the School of Information Studies at the University of Wisconsin—Milwaukee. Email: thaigh@computer.org.
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Abstract

In the decade after the Second World War IBM rebuilt its European operations as integrated, wholly owned subsidiaries of its World Trade Corporation, chartered in 1949. Long before the European common market eliminated trade barriers, IBM created its own internal networks of trade, allocating the production of different components and products between its new subsidiaries. Their exchange relationships were managed centrally to ensure that no European subsidiary was a consistent net importer. At the heart of this system were eight national electric typewriter plants, each assembling parts produced by other European countries. IBM promoted these transnational typewriters as symbols of a new and peaceful Europe and its leader, Thomas J. Watson, Sr., was an enthusiastic supporter of early European moves toward economic integration. We argue that IBM’s humble typewriter and its innovative system of distributed manufacturing laid the groundwork for its later domination of the European computer business and provided a model for the development of transnational European institutions.

Type
Articles
Information
Enterprise & Society , Volume 17 , Issue 2 , June 2016 , pp. 265 - 300
Copyright
Copyright © The Author 2015. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved. 

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References

Bibliography of Works Cited

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Gillingham, John. “American Monnetism and the European Coal-Steel Community in the Fifties.” Journal of European Integration History 1 (Number 1, 1995): 21–36.Google Scholar
Haigh, Thomas. “Computing the American Way: Contextualizing the Early US Computer Industry.” IEEE Annals of the History of Computing 32 (April-June 2010): 8–20.Google Scholar
Haigh, Thomas. “The Chromium-Plated Tabulator. Institutionalizing an Electronic Revolution, 1954–1958.” IEEE Annals of the History of Computing 23 (October-December 2001): 75–104.Google Scholar
Haigh, Thomas. “Remembering the Office of the Future: The Origins of Word Processing and Office Automation.” IEEE Annals of the History of Computing 28 (October-December 2006): 6–31.Google Scholar
Jensen-Eriksen, Niklas.“Industrial Diplomacy and Economic Integration: The Origins of All-European Paper Cartels, 1959–72.” Journal of Contemporary History 46 (January 2011): 179–202.Google Scholar
Jones, Geoffrey. “Business Enterprises and Global Worlds.” Enterprise and Society 3 (December 2002): 581–605.Google Scholar
Kranakis, Eda. “Politics, Business, and European Information Technology Policy: From Treaty of Rome to Unidata, 1958–1975.” In Information Technology Policy. An International History, edited by Coopey, Richard. New York: Oxford University Press, 2004.Google Scholar
McGlade, Jacqueline: “From Business Reform Programme to Production Drive: The Transformation of US Technical Assistance to Western Europe.” In The Americanisation of European Business: The Marshall Plan and the Transfer of US Management Models, edited by Kipping, Matthias, and Bjarnar, Ove, 18–34. London: Routledge, 1998.Google Scholar
Misa, Thomas J., and Schot, Johan. “Inventing Europe: Technology and the Hidden Integration of Europe.” History and Technology 21 (March 2005): 1–19.Google Scholar
Misa, Thomas J. “Understanding ‘How Computing has Changed the World.’” IEEE Annals of the History of Computing 29 (October-December 2007): 52–63.Google Scholar
Olegario, Rowena. “IBM and the Two Thomas J. Watsons.” In Creating Modern Capitalism. How Entrepreneurs, Companies, and Countries Triumphed in Three Industrial Revolutions, edited by McCraw, Thomas K., 349–93. Cambridge: Harvard University Press, 1997.Google Scholar
Paavonen, Tapani. “Finland and the Question of West European Economic Integration, 1947–1961.” Scandinavian Economic History Review 52 (Issue 2-3/2004): 85-109 & 155–81.Google Scholar
Paju, Petri. “IBM Manufacturing in the Nordic Countries.” In History of Nordic Computing 3, edited by Impagliazzo, John, Lundin, Per, and Wangler, Benkt, 215-27. Heidelberg: Springer, 2011.Google Scholar
Paju, Petri, and Durnová, Helena. “Computing Close to the Iron Curtain: Inter/national Computing Practices in Czechoslovakia and Finland, 1945–1970.” Comparative Technology Transfer and Society 7 (December 2009): 303–22.Google Scholar
Rooth, Tim, and Scott, Peter. “British Public Policy and Multinationals during the ‘Dollar Gap’” Era, 1945–1960.” Enterprise and Society 3 (March 2002): 124–61.Google Scholar
Schlombs, Corinna. “Engineering International Expansion: IBM and Remington Rand in European Computer Markets.” IEEE Annals of the History of Computing 30 (October-December 2008): 42–58.CrossRefGoogle Scholar
Stebenne, David L. “IBM’s ‘New Deal’: Employment Policies of the International Business Machines Corporation, 1933–1956.” The Journal of the Historical Society 5 (Winter 2005): 47–77.Google Scholar
Stebenne, David L. “Thomas J. Watson and the Business-Government Relationship, 1933–1956.” Enterprise and Society 6 (March 2005): 45–75.Google Scholar
Usselman, Steven W. “IBM and Its Imitators: Organization Capabilities and the Emergence of the International Computer Industry.” Business and Economic History 22 (Winter 1993): 1–35.Google Scholar
Wilkins, Mira. “U. S. Multinationals and the Unification of Europe, 1945–1960.” In The United States and the Integration of Europe: Legacies of the Postwar Era, edited by Heller, Francis H., and Gillingham, John R., 341-63. New York: St. Martin’s Press/Macmillan.Google Scholar
Yost, Jeffrey R. “Appropriation and Independence: BTM, Burroughs, and IBM at the Advent of the Computer Industry.” IEEE Annals of the History of Computing 35 (October-December 2013): 5–17.Google Scholar
Zeitlin, Jonathan. “Introduction: Americanization and its Limits: Reworking US Technology and Management in Post-War Europe and Japan.” In Americanization and its Limits: Reworking US Technology and Management in Post-War Europe and Japan, edited by Zeitlin, Jonathan, and Herrigel, Gary, 1–50. New York: Oxford University Press, 2000.Google Scholar
Sayers, Ken W. “A Summary History of IBM’s International Operations 1911-2006.” 2nd edition, IBM 2006. Somers, N.Y.: IBM Archive. Google Scholar
Schlombs, Corinna. “Productivity Machines: Transatlantic Transfers of Computing Technology and Culture in the Cold War.” PhD diss., University of Pennsylvania, 2010.Google Scholar
Ala-Ketola-Tuominen, Marja. Jokapojan amerikanperintö. Yhdysvaltalaisia kulttuurivaikutteita Suomessa toisen maailmansodan jälkeen. (Everyman’s American Heritage. Cultural Influences from the US in Finland after the Second World War, in Finnish.) Helsinki: Gaudeamus, 1989.Google Scholar
Anttila, Pentti. Big Blue Suomessa. O. y. International Business Machines A. b. 1936-1996. (Big Blue in Finland. O. y. International Business Machines A. b. 1936–1996, in Finnish). Printed in Salo, published by the author, 1997. Google Scholar
Belden, Thomas Graham, and Belden, Marva Robins. The Lengthening Shadow: The Life of Thomas J. Watson. Boston: Little, Brown and Company, 1962.Google Scholar
Black, Edwin. IBM and the Holocaust. The Strategic Alliance between Nazi Germany and America’s Most Powerful Corporation. London: Time Warner Books, 2001.Google Scholar
Bonin, Hubert, and Goey, Ferry de, eds. American Firms in Europe 1880–1980. Strategy, Identity, Perception and Performance. Geneve: Librairie Droz, 2009.Google Scholar
Campbell-Kelly, Martin. ICL. A Business and Technical History. Oxford: Clarendon Press, 1989.Google Scholar
Connolly, James. History of Computing in Europe. New York: IBM World Trade Corp., 1967.Google Scholar
Cortada, James W. The Digital Flood: The Diffusion of Information Technology Across the U.S., Europe, and Asia. Oxford: Oxford University Press, 2012.Google Scholar
Cortada, James W. Before the Computer: IBM, NCR, Burroughs, and Remington Rand and the Industry They Created, 1865–1956. Princeton, N.J., Princeton University Press, 1993.Google Scholar
Crafts, Nicholas, and Toniolo, Gianni, eds. Economic Growth in Europe since 1945. Cambridge: Cambridge University Press, 1996.Google Scholar
Dassbach, Carl H. A. Global Enterprises and the World Economy: Ford, General Motors, and IBM, the Emergence of the Transnational Enterprise. New York: Garland, 1989.Google Scholar
DeLoca, Cornelius E., and Jay Kalow, Samuel. The Romance Division…A Different Side of IBM. Wyckoff, New Jersey: D & K Book Company, Inc., 1991.Google Scholar
Engelbourg, Saul. International Business Machines. A Business History. New York: Arno Press, 1976.Google Scholar
Flad, Harvey K., and Griffen, Clyde. Main Street to Mainframes: Landscape and Social Change in Poughkeepsie. Albany: State University of New York Press, 2009.Google Scholar
Foy, Nancy. The Sun Never Sets on IBM. The Culture and Folklore of IBM World Trade. New York: William Morrow & Company, Inc., 1975. (First published in Great Britain in 1974 as The IBM World.)Google Scholar
France, Boyd. IBM in France. Washington: National Planning Association, 1961.Google Scholar
Heide, Lars. Punched-Card Systems and the Early Information Explosion, 1880–1945. Baltimore: The Johns Hopkins University Press, 2009.Google Scholar
Hogan, Michael J. The Marshall Plan. America, Britain, and the Reconstruction of Western Europe, 1947–1952. Cambridge: Cambridge University Press, 1987.CrossRefGoogle Scholar
Kipping, Matthias. Zwischen Kartellen und Konkurrenz. Der Schuman-Plan und die Ursprünge der europäischen Einigung 1944-1952. Berlin: Duncker & Humblot, 1996.Google Scholar
Maier, Charles S., ed. The Cold War in Europe: Era of a Divided Continent. Princeton, N.J.: Markus Wiener Publishers, 1991.Google Scholar
Maisonrouge, Jacques. Inside IBM: A Personal Story. Translated by Rootes, Nina. New York: McGraw-Hill Publishing Company, 1989. First published in 1985.Google Scholar
Maney, Kevin. The Maverick and His Machine. Thomas Watson Sr. and the Making of IBM. Hoboken: John Wiley & Sons, 2003.Google Scholar
Milward, Alan S. The Reconstruction of Western Europe 1945–51. Berkeley: University of California Press, 1984.Google Scholar
Nerheim, Gunnar, and Nordvik, Helge W.. Ikke bara maskiner. Historien om IBM i Norge 1935-1985. (Not Just Machines. History of IBM in Norway 1935-1985, in Norwegian). Oslo: Universitetsforlaget, 1986.Google Scholar
Petzold, Hartmut. Rechnende Maschinen. Eine historische Untersuchung ihrer Herstellung und Anwendung vom Kaiserreich bis zur Bundesrepublik. Düsseldorf: VDI Verlag, 1985.Google Scholar
Pugh, Emerson W. Building IBM: Shaping an Industry and Its Technology. Cambridge, MA: The MIT Press, 1995.Google Scholar
Rodgers, William. Think. A Biography of the Watsons and IBM. New York: Stein and Day, 1969.Google Scholar
Steinhilper, Ulrich. Don’t Talk – Do It: From Flying to Word Processing. United Kingdom: Rolf Steinhilper, 2006.Google Scholar
Tedlow, Richard S. The Watson Dynasty: The Fiery Reign and Troubled Legacy of IBM’s Founding Father and Son. New York: Harper Business, 2003.Google Scholar
Vernay, Jacques. Chroniques de la Compagnie IBM France 1914–1987. Paris: IBM France, 1988.Google Scholar
van der Vleuten, Erik, and Kaijser, Arne, eds. Networking Europe: Transnational Infrastructures and the Shaping of Europe, 1850–2000. Sagamore Beach, MA: Science History Publications/USA, 2006.Google Scholar
Watson, Thomas J. Jr., and Petre, Peter. Father, Son & Co.: My Life at IBM and Beyond. New York: Bantam Books, 1990.Google Scholar
Wilkins, Mira. The Maturing of Multinational Enterprise: American Business Abroad from 1914 to 1970. Cambridge: Harvard University Press, 1974.CrossRefGoogle Scholar
Akera, Atsushi. “IBM’s Early Adaptation to Cold War Markets: Cuthbert Hurd and his Applied Science Field Men.” Business History Review 76 (December 2002): 767–802.Google Scholar
Campbell-Kelly, Martin. “ICL: Taming the R&D Beast.” Business and Economic History 22, (Fall 1993): 169–80.Google Scholar
Cortada, James W. “Patterns and Practices in How Information Technology Spread Around the World.” IEEE Annals of the History of Computing 30 (December 2008): 4–25.Google Scholar
de Goey, Ferry, and Wubs, Ben. “US Multinationals in the Netherlands in the 20th Century: ‘The Open Gate to Europe.’” In American Firms in Europe 1880–1980. Strategy, Identity, Perception and Performance, edited by Bonin, Hubert, and Goey, Ferry de, 149–84. Geneve: Librairie Droz, 2009.Google Scholar
Gillingham, John. “American Monnetism and the European Coal-Steel Community in the Fifties.” Journal of European Integration History 1 (Number 1, 1995): 21–36.Google Scholar
Haigh, Thomas. “Computing the American Way: Contextualizing the Early US Computer Industry.” IEEE Annals of the History of Computing 32 (April-June 2010): 8–20.Google Scholar
Haigh, Thomas. “The Chromium-Plated Tabulator. Institutionalizing an Electronic Revolution, 1954–1958.” IEEE Annals of the History of Computing 23 (October-December 2001): 75–104.Google Scholar
Haigh, Thomas. “Remembering the Office of the Future: The Origins of Word Processing and Office Automation.” IEEE Annals of the History of Computing 28 (October-December 2006): 6–31.Google Scholar
Jensen-Eriksen, Niklas.“Industrial Diplomacy and Economic Integration: The Origins of All-European Paper Cartels, 1959–72.” Journal of Contemporary History 46 (January 2011): 179–202.Google Scholar
Jones, Geoffrey. “Business Enterprises and Global Worlds.” Enterprise and Society 3 (December 2002): 581–605.Google Scholar
Kranakis, Eda. “Politics, Business, and European Information Technology Policy: From Treaty of Rome to Unidata, 1958–1975.” In Information Technology Policy. An International History, edited by Coopey, Richard. New York: Oxford University Press, 2004.Google Scholar
McGlade, Jacqueline: “From Business Reform Programme to Production Drive: The Transformation of US Technical Assistance to Western Europe.” In The Americanisation of European Business: The Marshall Plan and the Transfer of US Management Models, edited by Kipping, Matthias, and Bjarnar, Ove, 18–34. London: Routledge, 1998.Google Scholar
Misa, Thomas J., and Schot, Johan. “Inventing Europe: Technology and the Hidden Integration of Europe.” History and Technology 21 (March 2005): 1–19.Google Scholar
Misa, Thomas J. “Understanding ‘How Computing has Changed the World.’” IEEE Annals of the History of Computing 29 (October-December 2007): 52–63.Google Scholar
Olegario, Rowena. “IBM and the Two Thomas J. Watsons.” In Creating Modern Capitalism. How Entrepreneurs, Companies, and Countries Triumphed in Three Industrial Revolutions, edited by McCraw, Thomas K., 349–93. Cambridge: Harvard University Press, 1997.Google Scholar
Paavonen, Tapani. “Finland and the Question of West European Economic Integration, 1947–1961.” Scandinavian Economic History Review 52 (Issue 2-3/2004): 85-109 & 155–81.Google Scholar
Paju, Petri. “IBM Manufacturing in the Nordic Countries.” In History of Nordic Computing 3, edited by Impagliazzo, John, Lundin, Per, and Wangler, Benkt, 215-27. Heidelberg: Springer, 2011.Google Scholar
Paju, Petri, and Durnová, Helena. “Computing Close to the Iron Curtain: Inter/national Computing Practices in Czechoslovakia and Finland, 1945–1970.” Comparative Technology Transfer and Society 7 (December 2009): 303–22.Google Scholar
Rooth, Tim, and Scott, Peter. “British Public Policy and Multinationals during the ‘Dollar Gap’” Era, 1945–1960.” Enterprise and Society 3 (March 2002): 124–61.Google Scholar
Schlombs, Corinna. “Engineering International Expansion: IBM and Remington Rand in European Computer Markets.” IEEE Annals of the History of Computing 30 (October-December 2008): 42–58.CrossRefGoogle Scholar
Stebenne, David L. “IBM’s ‘New Deal’: Employment Policies of the International Business Machines Corporation, 1933–1956.” The Journal of the Historical Society 5 (Winter 2005): 47–77.Google Scholar
Stebenne, David L. “Thomas J. Watson and the Business-Government Relationship, 1933–1956.” Enterprise and Society 6 (March 2005): 45–75.Google Scholar
Usselman, Steven W. “IBM and Its Imitators: Organization Capabilities and the Emergence of the International Computer Industry.” Business and Economic History 22 (Winter 1993): 1–35.Google Scholar
Wilkins, Mira. “U. S. Multinationals and the Unification of Europe, 1945–1960.” In The United States and the Integration of Europe: Legacies of the Postwar Era, edited by Heller, Francis H., and Gillingham, John R., 341-63. New York: St. Martin’s Press/Macmillan.Google Scholar
Yost, Jeffrey R. “Appropriation and Independence: BTM, Burroughs, and IBM at the Advent of the Computer Industry.” IEEE Annals of the History of Computing 35 (October-December 2013): 5–17.Google Scholar
Zeitlin, Jonathan. “Introduction: Americanization and its Limits: Reworking US Technology and Management in Post-War Europe and Japan.” In Americanization and its Limits: Reworking US Technology and Management in Post-War Europe and Japan, edited by Zeitlin, Jonathan, and Herrigel, Gary, 1–50. New York: Oxford University Press, 2000.Google Scholar
Sayers, Ken W. “A Summary History of IBM’s International Operations 1911-2006.” 2nd edition, IBM 2006. Somers, N.Y.: IBM Archive. Google Scholar
Schlombs, Corinna. “Productivity Machines: Transatlantic Transfers of Computing Technology and Culture in the Cold War.” PhD diss., University of Pennsylvania, 2010.Google Scholar